GASB 96 - What is a SBITA?
GASB 96 defines a subscription-based information technology arrangement (SBITA) as a contract granting a government control over the right to use another party's IT software or related tangible assets for a specified noncancellable period through an exchange or exchange-like transaction, including services like SaaS, PaaS, and IaaS, where control entails both the right to obtain service capacity and to determine the use of the IT assets.
GASB 96 defines a subscription-based information technology arrangement (SBITA) as a contract that conveys control of the right to use another party's IT software, alone or in combination with tangible capital assets, as specified in the contract for a period of time in an exchange or exchange-like transaction.
Types of SBITAs
- Software as a Service (SaaS)
- Platforms as a Service (PaaS)
- Infrastructure as a Service (IaaS)
Examples: Canvas, Skyward, Dropbox, OneDrive, Google, Zoom, ERP systems, PeopleSoft, GET Mobile, and LeaseCrunch.
SBITAs include contracts that meet the definition above, even if they are called something different.
Control
To have control, the government must have both:
- The right to obtain the present service capacity from the use of the underlying IT assets as specified in the contract.
- The right to determine the nature and manner of use of the underlying IT assets as specified in the contract.
Period of Time
This is the term that the government has a noncancellable right to use the underlying IT assets.
Exchange or Exchange-like Transaction
An exchange or exchange-like transaction is one that occurs in an orderly fashion.